- The CFPB gives no single dollar target. It says to review the unexpected expenses you have had before and set your goal from what they cost.
- Even a small amount provides some financial security, so start with what you can.
- Automating a recurring transfer from checking to savings is one of the CFPB’s suggested ways to build the habit.
- A bank or credit union account is generally considered one of the safest places for the money.
Why a small cushion matters
The CFPB’s guide says a financial shock, even a minor one, could set you back if you have nothing saved. People without savings may use credit cards or loans, which can turn into debt that is hard to repay, or pull money from retirement funds. Money set aside in a separate account gives you something to draw on first.
An emergency fund is money set aside only for unplanned costs, kept apart from the account you spend from.
Set a goal from your own life
The CFPB does not give a standard multiple of monthly expenses. Its method is to look back at the unexpected costs you have faced, such as car repairs, medical bills or a gap in pay, add up what they cost, and use that as your target. Write the list down. The total is your first goal. If you have insurance, remember that you pay the deductible before the insurer pays its share; see how premiums and deductibles work.
What small amounts add up to
These figures are our own arithmetic (weekly amount times 52 weeks, with no interest).
| Per week | After 3 months (13 weeks) | After 1 year (52 weeks) |
|---|---|---|
| $10 | $130 | $520 |
| $25 | $325 | $1,300 |
| $50 | $650 | $2,600 |
If you are paid every two weeks, $50 from each of 26 paychecks is the same $1,300 a year as $25 a week. The CFPB lists a tax refund among the windfalls you can save; if you owe tax instead, see IRS payment plans.
The CFPB’s tips for starting small
- Set a specific goal, contribute consistently, track your progress and celebrate milestones.
- Set up recurring transfers from checking to savings, and watch your balance so the transfer does not cause overdraft fees.
- If your employer allows direct deposit to two accounts, route part of your pay to savings.
- Track when money comes in and goes out. Consider asking creditors to adjust bill due dates, and move extra cash to savings in higher-income weeks.
- Put all or part of a tax refund or a holiday or birthday gift into savings.
Where to keep it
| Option | What the CFPB says |
|---|---|
| Bank or credit union account | Generally considered one of the safest places to put your money. A dedicated account helps keep it separate. |
| Prepaid card | Not connected to a bank or credit union, and you can spend only the balance loaded on it. |
| Cash | Kept at home or with a trusted person. It can be stolen, lost or destroyed. |
If you use a bank, check that it is insured. Our guide to the FDIC limit explains what is covered.
Frequently asked questions
How much should I have in an emergency fund?
The CFPB gives no fixed figure. It says to review the unexpected expenses you have had and what they cost, then set your goal from that.
Where is the best place to keep an emergency fund?
The CFPB calls a bank or credit union account generally one of the safest places for your money and suggests a dedicated account.
Is it worth saving if I can only afford a little?
The CFPB says even a small amount can provide some financial security. At $10 a week you would have $520 after a year, by our arithmetic.
How can I make saving automatic?
Set up recurring transfers from checking to savings, or split your direct deposit between two accounts if your employer allows it.
Sources
Each source was opened and read on October 26, 2026. See how we verify.